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The Future of Contingent Workforce Management

 

 

Robert Moffat, our SVP and Global Head of Solutions, sat down with Jeff Nugent of CW Strategies to discuss the new frontier of contingent workforce management.

During this conversation, Robert provided his thoughts on the globalization of programs, freelancer management, direct sourcing, and where they all fit within the workforce management ecosystem.

 

The Globalization of Programs

When looking to build out a workforce program, it's important to know what your challenges are so that you can properly choose the correct solution. Many organizations get in trouble because they're looking for a specific solution that they think will solve their problems, but it may not be what's best for them.

Jeff: “Let's talk about globalization of programs. Given that people can work from anywhere, and our talent pools are global now, is globalization of programs or the rollout of global programs something that you're seeing more frequently?”

Robert: "In the last 10 years I have seen more failed global projects and rollouts than I have seen successful ones. There is a disconnect between what organizations want versus what they actually need. You may want standardization and uniformity, but if someone was going to standardize an awful service, would you change your mind."

The goal should not be "standardization" or "visibility", it should be something that is appropriate for your organization and its challenges.

Robert: "The truth is, you can get 70% of the benefit for 20% the investment by just understanding who is in your business, where they are, what the cost center is, and billing the appropriate rate. Some people are looking for a Rolls Royce with a Ford Budget, when the Ford would deliver exactly what you need."

In summary, globalization of a contingent workforce program from day 1 is a very big thing to ask for, and it requires the right stakeholders, the right vision, the right partner, and the right situation. For Hays, we have seen more success with programs that start at regional levels and then expands to global, or a global baseline that gets rolled out to regions.

The theme that you can build a benefits profile incrementally is true of the program itself.

Robert: "The way I describe it is that if you are building a house, you focus on the foundation, walls, and roof, which are all your basics. There's no use in worrying about the garden or furnishings until you have somewhere to live."

In the first instance of building your program, there needs to be a strong foundation of visibility, control, cost and risk management. From these basics, you can enhance your program to be a true competitive advantage by engaging skills quicker, more efficiently, and at the right cost and risk profile.

 

Freelancer Management

Due to the pandemic, many organizations started utilizing freelancers for things like creative projects and marketing tasks. And since this talent could theoretically work from anywhere, the pool of talent expanded.

Jeff: Now that we are seeing global programs and talent pools, are there any trends that you're seeing in the market when it comes to workforce management?

Robert: "The workforce went from the four corners of the country to the four corners of the globe. A lot of organizations went and said "we can hire anyone who works anywhere". While that might be true, it's our role to make recommendations on how and where the work should be done."

Instead of sifting through a talent pool of two billion people, you can utilize data and analytics to find talent with the best mix of skill, risk, and cost profile for a specific position. Rather than leaving your options open, we can tell you where to get the best value for your roles.

Jeff: What are you seeing in the Freelancer Management space? Are organizations utilizing this type of worker?

Robert: "Freelancer Management Systems do come in as a subset of the workforce. Where we have seen freelancers really kick in is industrial which is a commoditized industry. Two emerging freelancer positions that surprised me at first were nursing and teaching."

Despite being high-value knowledge workers, nurses and teachers are credentialed in nature. You either are a registered nurse or you aren't. With credentials you have an assured level of skills, so it reduces the “selection” process required, so it allows for organizations to spot-hire where and when they need it.

Robert: "The freelance market has been slower moving into areas like IT. It's more difficult to put all of the required responsibilities into a package for what you want for the role, and it tends to be more of an ongoing position with a multitude of responsibilities."

For highly task-based jobs or short term projects, outsourcing the work can limit risk and cost. Additionally, due to the fact that contractors are usually already talented, certified, or experts in their field, there is no need to train or upskill current workers to fill the needed roles.

Robert: "It's all very exciting. Contingent workers, the gig economy, it's all one for us. It's a part of an omnichannel strategy. Everyone should have access to it and we provide guidance on which of those is the best for you based on your cost/risk profile."

 

Direct sourcing

Jeff: "When it comes to Direct Sourcing, how do you see them fitting into an MSP framework and is that a viable strategy?"

Robert: "I was involved in my first direct sourcing contract in 2005 in the UK, and everyone around that time told us it wouldn't work in the UK. Then we tried to implement it in the Asia Pacific and we were told it wouldn't work over there. Then we moved to the US and we were told it wouldn't work here either and all three times it worked."

While every region is highly different, the basics of workforce management is largely the same. Once you have the structure for the programs, you can feed into it the same way you would anywhere else. 

Robert: "I sat down with one of the biggest financial institutions in the world and they told us that they've been running their direct sourcing program for years and have only made 2 placements.

But they were making the same mistakes everyone else did. Just because you are on TV or are a big player in your industry, doesn't mean you have the right answer for your customer value proposition. You still have to meet the talent where they're at and sell your organization as a good place to work.

Robert: "There was a slight misunderstanding of what is required for success by the organization there. I keep going back to The Field of Dreams where they said 'If you build it they will come' and I think that's the attitude some people have for direct sourcing. They bought a technology, didn't do anything with it, and expected a ready supply of skilled and engaged people”

You can't just front the money and hope that your program solves all of your problems. You need to nurture that program just like you would anything else. The real benefits come from full adoption of the systems and processes to realize that cost savings and risk reduction.

 

To learn more about the globalization of workforce programs, direct sourcing, or freelancer management, schedule a free consultation